Scania Interim Report January-March 2009

Scania Interim Report January-March 2009

- Operating income fell to SEK 506 m. (3,604)
- Net sales decreased by 28 percent to SEK 15,859 m. (21,991)
- Earnings per share fell to SEK 0.22 (3.14)
- Cash flow amounted to SEK 874 m. (1,686) in Vehicles and Services
- At present, Scania foresees no change in the demand for vehicles in the coming
quarters

Comments by Leif Östling, President and CEO
“Scania reported an operating profit of SEK 506 m. during the first quarter.
Falling vehicle deliveries and substantially lower capacity utilisation pulled
down earnings. Service volume also declined somewhat from a high level. Scania's
earnings were affected to only a minor extent by the weaker Swedish krona due to
currency hedges. Practically all markets where Scania has operations are
characterised by low economic activity due to the turbulence in the financial
markets and its impact on the real economy. In most European markets, the truck
population has a relatively low average age, and many transport companies have
low utilisation of their vehicle fleets, which is sharply slowing investments in
new vehicles. The transport equipment industry is characterised by highly
cyclical demand over a 10-year period, and we are now in the downturn phase. The
Scania Group has taken a number of steps to adjust its cost level and to
strengthen cash flow. Most of the 2,000 production employees with fixed term
temporary contracts have left the company, a reduction to 10,000 employees in
the production units and working hours have been reduced to mainly daytime
shifts. Scania has postponed various investments, mainly in production, and has
carried out a reduction in the number of outside consultants. Aside from
adjusting to the business cycle, Scania is prioritising measures that will lead
to a more efficient structure. Training programmes for production employees
began during the quarter. This will strengthen the potential for profitable
growth when the demand for transport equipment normalises. At present, Scania
foresees no change in the demand for vehicles in the coming quarters”

Contact persons:
Per Hillström
Investor Relations
tel. +46 8 553 50226
mobile tel. +46 70 648 30 52	

Erik Ljungberg
Corporate Relations
tel. +46 8 553 835 57
mobile tel. +46 73 988 35 57


Scania is one of the world's leading manufacturers of trucks and buses for heavy
transport applications, and of industrial and marine engines. A growing
proportion of the company's operations consists of products and services in the
financial and service sectors, assuring Scania customers of cost-effective
transport solutions and maximum uptime. Employing 35,000 people, Scania operates
in about 100 countries. Research and development activities are concentrated in
Sweden, while production takes place in Europe and South America, with
facilities for global interchange of both components and complete vehicles. In
2008, invoiced sales totalled SEK 89 billion and net income amounted to SEK 8.9
billion. 


Scania press releases are available at www.scania.com